More than half of all US businesses have been hacked in the last year, and Cyber Risk Insurance provides one important form of protection from cyber attacks. Costs associated with cyber incidents were significant for small and medium sized businesses.
New York Cybersecurity Regulation 23 NYCRR 500, the not so new cybersecurity regulation in New York, is in effect and applies to all New York licensed insurance agencies and agents, both resident and non-resident.
The Insurance Agents/Brokers E&O Standalone Tail market is very active, providing flexible terms and competitive pricing. These Standalone Tail options are provided by other insurers separate from the expiring policy, can be customized for specific situations, and often are very competitively priced. In addition to insurance agents & brokers, many other types of professional services might require a Tail for an event, including attorneys, architects & engineers, real estate organizations, investment organizations & physicians & other healthcare services.
Insurance agents & brokers face an increased risk of E&O (errors & omissions) claims from hurricanes and other catastrophes, along with insolvency risk from insurers, and the agency itself may be directly impacted. Good internal procedures can mitigate the exposure.
Healthcare data breach exposures are not all cyber based. Third parties, paper records and fines are also exposures that should be included in a comprehensive Cyber Risk Insurance policy.